Is Affordable California Health Insurance Finally on the Horizon?December 2007
In a surprising turn of events, California Gov. Arnold Schwarzenegger (R) and state Assembly Speaker Fabian Núñez (D) have reached a tentative agreement on a $14 billion plan to overhaul
California health insurance, and the health care system as a whole.
According to the
Kaiser Daily Health Policy Report, under the new and compromised plan, nearly all residents would be required to obtain health care coverage. So how will Schwarzenegger provide affordable medical coverage to Californians who are currently uninsured, but don't qualify for state subsidized plans?
Residents with incomes up to 250% of the federal poverty level would receive state subsidies for coverage, and residents with incomes up to 400% of the poverty level would be able to fully deduct any health care premium costs that exceed 5.5% of their incomes. Further, low-income residents would be exempt from the coverage mandate if they would be required to spend more than 5% of their income on minimal California health insurance and do not qualify for public programs.
So who is going to pay for this more affordable medical insurance plan? Schwarzenegger has agreed to Núñez's proposal to partially finance a health care system overhaul by increasing the state's tobacco tax. And the plan could be further supported by a 4% tax on hospital revenue in an effort to secure matching federal funds and boost reimbursements for services.
Will there be more taxes for residents to pay in order to support Schwarzenegger's ambitious plan? At this point there hasn't been any discussion of taxes and California health insurance, however $14 billion in funding is needed for the overhaul and many fear that budget cuts to Medicaid will be a part of the deal.
Facts on:
Affordable Medical Insurance
Did you know...
There are more than 6.5 million uninsured Californians?
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Others argue that with more
affordable medical insurance available to state residents, overall costs will be saved.
Regardless, revenue provisions will go before the voters on the November 2008 ballot, and the bill would not take effect unless state residents approve those measures, suggesting that there's much more to come in terms of negotiations for California's health coverage system.
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